According to Statistics Canada’s job vacancy report, 129,100 accommodations and food services jobs remained vacant in June as restaurants began reopening. This sector had more openings than health care and social assistance, which had the most vacancies the previous month. The retail trade sector in Canada ranks third. Job vacancies in food services drove up the number of vacant positions in Canada. A total of 815,800 jobs were advertised in June, up 22 percent from May. The majority of these openings were in the service sectors.
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Since Statistics Canada began collecting data on job vacancies in October 2020, June had the highest vacancy rate. There is a difference between the number and the rate of job vacancies. The vacancy rate measures how many vacant positions are present in a sector compared to all the positions. Vacancy rates in Canada reached 5 percent in June.
Over 12 percent of the vacant jobs in the sector were in accommodation and food services. As restaurants opened their outdoor dining areas in late May, employers were actively recruiting to fill vacancies. The provinces of British Columbia and Quebec experienced the highest job vacancy rates. In Manitoba and Nova Scotia, the job vacancy rate was the lowest.
Labour Shortages Are Not Going Away
Labor shortages are predicted to continue to increase in the coming months, according to the Business Development Bank of Canada Report.
Canada’s labor force crisis was not caused by the pandemic. As a result of aging populations and declining labor force participation, which started over 20 years ago, this has been happening. The pandemic has exacerbated the problem by destabilizing an already unstable situation.
- 55% of Canadian entrepreneurs have difficulty hiring workers. A number of jobs have not been filled more than three months.
- 26% of Canadian entrepreneurs have trouble retaining their employees. Economic activity could worsen as it returns to pre-pandemic levels.
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Not enough candidates are applying to job openings
Right now, not enough candidates are applying for job openings. After posting a job offer, entrepreneurs often say they don’t receive any CVs. A close second to lack of hard and soft skills in applicants as a reason for hiring difficulties. The entrepreneurs reported being unable to find talent with the skillset they needed.
Nearly two-thirds of entrepreneurs have missed out on business opportunities
As a result of labor shortages, businesses are forced to turn down sales or delay projects, missing out on potential business growth. Further, both owners and employees are carrying greater loads of work across all industries.